Question

open current account with national bank

Answer 1

It's journal will be..

Bank account...Dr
To cash account..
(Being Account opened).

Answer 2

Hi friend,

Explanation :-

At first you should be know about the golden rules of accounts.

Here, we see that for opened a current account on national bank. So the journal entry for this transcation as follows :-

Bank A/c----------Dr. [ Amount ]
To Cash A/c [ Amount ]

( Being , opened a bank account )

In this , journal entry we see two types of accounts affected here.
1. 'Bank A/c' and
2. 'Cash A/c'

So, The cash deposited at the bank increasing the balance of the bank account.

As we know , the golden 'what goes out credit ' so, here the cash goes out from the business by depositing cash into bank. So, the cash a/c is credited...i hope it helps you

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